COMPUTER APPLICATIONS TO BUSINESS II CAB - II

PROJECT REPORT

TITLE OF THE PROJECT

Bachelors in Business A !inis"ra"ion #e$ar"!en" o% Business A !inis"ra"ion

Pro&ec" A 'isor Mu(a!!il Ah!a )han Facul"* Me!+er I,RA Uni'ersi"* Su+!i""e B*S.E# SHARI, PER/E0

122

#EPARTMENT OF BUSINESS A#MINISTRATION I,RA UNI/ERSIT. FALL SEMESTER3 #ECEMBER 1451

COMPUTER APPLICATIONS TO BUSINESS II CAB - II #ELL6 INC

P REFACE
The $ur$ose o% "his re$or" is "o %in ou" ho7 #ell Inc6 is co$in8 u$ 7i"h "he e-+usiness s"ra"e8ies ho7 "he* are !ar9e"in8 i" an 7ha" "heories "he* are usin8 in $rac"ices6 In "his re$or" 7e are si!$l* ealin8 7i"h "he i!$ac" o% e-co!!erce an "he $a*!en" !e"ho s 7ha" are "heir !ar9e"in8 s"ra"e8* an ho7 "he* are o%%erin8 "echnical su$$or" "o "he consu!er an "he su$$liers

A C)NO:LE#;MENT
Than9 .ou3 Mr6 Mu(a!!il )han <"he ins"ruc"or o% "he course "i"le CAB II=3 7ho 8a'e !e "he o$$or"uni"* "o $resen" "he 9no7le 8e3 s9ills an $rac"ical 9no7-ho7 I learne in $ersua in8 "his course6 I ha'e chosen "o !a9e a Pro&ec" re$or" on "he Eco!!erce s*s"e! o% #ELL3 Inc6 The re$or" as 8ui e +* "he ins"ruc"or 7oul hel$ !e in un ers"an in8 "he Eco!!erce s*s"e! in a $rac"ical a$$lica"ion6 The can %acili"a"e "he an* "o 9no7 ho7 "he O$era"ions an Mana8erial 7orl is rela"e "o "he IT a$$lica"ions an ho7 "he co!$an* li9e #ELL is ealin8 7i"h s!ar" an u$ a"e "echnolo8* "o co$e 7i"h "he e!an o% "heir cus"o!ers6

Con"en"s
COMPUTER APPLICATIONS TO BUSINESS II.......................................................................1 Functions..................................................................................................................................... 9 Customer Support ..................................................................................................................... 11 Imp!ct o" E#Commerce on $e%% core process.............................................................................11 Competiti&e A'&!nt!(es............................................................................................................ 1) $e"in!*%e m!r+et........................................................................................................................ 1, I'enti"i!*%e Re&enue Mo'e%........................................................................................................1$e%% Pri&!c. securit. Po%ic. .......................................................................................................1Pri&!c. !n' $!t! Securit........................................................................................................... 1/ Internet Commerce.................................................................................................................... 10 Customi1e' E2perience............................................................................................................. 19 3e* Be!cons............................................................................................................................ 19 T4ir'#P!rt. Sites........................................................................................................................ )5 C4i%'ren6s Pri&!c. 7A(e 1) !n' Un'er8......................................................................................)5 Ot4er 3e* sites......................................................................................................................... )1 P!.ment Met4o's...................................................................................................................... )1 M!r+etin( Mi2 Str!te(............................................................................................................... )) Pro'uct ..................................................................................................................................... )) P%!ce ......................................................................................................................................... )) Price ......................................................................................................................................... )9 Promotion ................................................................................................................................. )9 $istri*ution Str!te(. ............................................................................................................... ),

:o&ernment Re(u%!tions........................................................................................................... ), Entr. B!rriers............................................................................................................................. ), T!r(et M!r+ets........................................................................................................................... )-

Current M!r+et........................................................................................................................... )Prospecti&e T!r(et M!r+ets.......................................................................................................)/ M!r+et Tren's............................................................................................................................ )/ Competitor................................................................................................................................. ); On%ine tec4nic!% ser&ices !n' tec4nic!% support .....................................................................)0

S3OT An!%.sis.......................................................................................................................... )0 Stren(t4s .................................................................................................................................. )0 3e!+nesses ............................................................................................................................. )0 Opportunities ............................................................................................................................ )9 T4re!ts ...................................................................................................................................... )9 Conc%usion................................................................................................................................. 91

Executive summary:
#ell3 Inc6 is a 8lo+al in%or!a"ion "echnolo8* co!$an*3 7hich esi8ns3 e'elo$s3 !anu%ac"ures an is"ri+u"es co!$u"er s*s"e!s6 The co!$an* "hrou8h i"s su+si iaries o%%ers i"s cus"o!ers a

+roa ran8e o% solu"ions an ser'ices eli'ere

irec"l* an "hrou8h o"her is"ri+u"ion channels6

I" con uc"s i"s +usiness ac"i'i"ies "hrou8h %our 8lo+al o$era"in8 se8!en"s- Lar8e En"er$rise3 Pu+lic3 S!all an Me iu! Business3 an Consu!er6 The Lar8e En"er$rise se8!en" %ocuses on eli'erin8 solu"ions an ser'ices "hrou8h a"a cen"er an clou co!$u"in8 solu"ions "o lar8e 8lo+al an na"ional cor$ora"e cus"o!ers6 The Pu+lic se8!en" %ocuses on +roa ran8e o% in%or!a"ion "echnolo8* nee s o% e uca"ional ins"i"u"ions3 8o'ern!en"3 heal"h care3 an la7 en%orce!en" a8enc* cus"o!ers6 The S!all an Me iu! Business se8!en" %ocuses on hel$in8 s!all an !e iu!-si(e +usinesses 8e" "he !os" ou" o% "heir "echnolo8* +* o%%erin8 $ro uc"s3 ser'ices an solu"ions6 The Consu!er se8!en" %ocuses on eli'erin8 7ha" cus"o!ers 7an" %ro! "he "o"al "echnolo8* e>$erience o% en"er"ain!en"3 !o+ili"*3 8a!in8 an esi8n6 #ell 7as %oun e +* Michael S6 #ell in Ma* 5?@A an is hea Buar"ere in Roun Roc93 TC

Computer App%ic!tions to Business#II

Organizational Environment:
Economic Factor
For #ell "o $ene"ra"e in"o "his !ar9e" i" !us" ous" "he Le8en +ran PC 7hich is alrea * a +i8 hi" in China an "here%ore #ell has alrea * +uil" a %ac"or* in Cia!en3 7hich is on "he sou"heas"ern coas" o% China6 #ellDs %acili"* insi e o% China is a !a&or s"e$ in"o "he Chinese !ar9e"6 :i"h "his %ac"or* in Cia!en3 #ell can $ro!o"e i"s ne>" a* eli'er* "o A44 ci"ies 7hich is one o% "he co!$an* "ra e!ar9s6 <Ro eric9= An #ells China !ar9e" share has 8ro7n %ro! near (ero in 5??@3 "o A6AE6 <Ro eric9= #ell oes no" $ro uc" an !anu%ac"ure $ar"s onl*3 i" searches an se"s u$ lon8-"er! s"ra"e8* "o acco!!o a"e 8lo+al cus"o!ers6 More +usiness an !ore $ro uc"ion %acili"ies 7ill +e o$ene 7orl 7i e "o a o$" an 8lo+ali(a"ion s*s"e! an "he 8lo+al e!an in "he ne>" eca e6

Long Term Objectives

#ell is s"ar"in8 "o "a9e on ne7 $ro&ec"s li9e %ocusin8 on !ar9e"s 8lo+all*6 #ells o+&ec"i'e is "o "a9e o'er 14E o% "he Asia !ar9e"6 The in"erne" !ar9e" has +een e>$an in8 an e>$lo in8 across "he 8lo+e6 #ell 9no7s "ha" "he 7a* "o 8lo+ali(e "he co!$an* success%ull* is "hrou8h e-+usiness6 The 8rea"es" o$$or"uni"ies %or %u"ure $ro%i"s are in China6 China has a hu8e co!$u"er !ar9e" an is 8ro7in8 %as"6 The !ain co!$u"er co!$an* ri8h" no7 in China is "he Bei&in8-+ase Le8en co!$u"er6 There are a lo" o% o$$or"uni"ies here %or #ell +ecause "here is lo7 $ene"ra"ion cos" in"o "he Chinese !ar9e"3 an is consi ere "o +e "he "hir lar8es" in "he :orl 6 #es$i"e rela"i'el* lo7 $ene"ra"ion ra"es3 ChinaDs F54 +illion co!$u"er !ar9e" is alrea * "he "hir lar8es" in "he 7orl G 7i"hin in a %e7 *ears i" is e>$ec"e "o $as" Ja$an an +eco!e secon onl* "o "he U6S6 <Ro eric9= The $ro&ec" "ha" #ell is "r*in8 "o "a9e on is "o a 'ance in"o "he Chinese !ar9e" 7here "he* see a hu8e $o"en"ial increasin8 "heir re'enue 8rea"l*6

Operating Environment
Consu!ers 'ie7 #ell as a Buali"* +ran a" a 8oo $rice6 So!e consu!ers %in "ha" #ellDs co!$e"i"ors !a* +e a li""le !ore e>$ensi'e +u" s"ill o%%er a Buali"* +ran "he co!$an* $lans "o launch a sales ca!$ai8n H#ell on IceH "ha" 7ill o%%er 52E iscoun"s on i"s Bla e Cen"re

P!(e No 0

Computer App%ic!tions to Business#II

s*s"e! an on i"s >AA4 "o$-en In"el ser'er6 <Shan9lan =6 #ell ran9s hi8h 7i"h cus"o!ers +ecause "he co!$an* o%%ers %ree "echnical su$$or" i% nee e 6 The $urchasin8 $rocess has chan8e %or "he consu!ers 7i"h #ell +ecause all "he or erin8 is one online 7hich o%%ers con'enience "o i"s cus"o!ers an !ini!i(e in'en"or*6 The %lo7 o% !a"erials %ro! su$$liers in"o #ell s"ar"s +* "he co!$an* $u""in8 in or ers "o %ac"ories "ha" are +ase on "7o ca"e8ories6 These "7o ca"e8ories are $ro uc" "*$e an 8eo8ra$h*6 :hen $u""in8 in or ers %or $ro uc" "*$e #ell 7an"s "o selec" "he ri8h" %ac"or* "ha" s$eciali(es or eals 7i"h a cer"ain $ro uc"6 ;eo8ra$hic or ers !ainl* %ocus on "he 7here "he or er is co!in8 %ro! "o !ini!i(e "he "rans$or"a"ion e>$ense6 Michael #ell an his "ea! ha'e su$er+ rela"ionshi$s 7i"h "heir su$$liersG "he* !ain"ain "hose su$er+ rela"ionshi$s3 +* ensurin8 "ha" "he su$$liers 7in e'er* "i!e #ell 7ins6 <Ri((o= As a conseBuence3 #ells su$$liers are $er%ec"l* 7illin8 "o 9ee$ a "ruc9 loa o% in'en"or* a" #ells loa in8 oc96 <Ri((o= #ell 7ill 8o "hrou8h so!e se'eral chan8es in "he ne>" cou$le *ears "o e'elo$ i"s s*s"e!3 i!$ro'e cus"o!er ser'ice3 re uce cos"3 an i!$ro'e su$$lier con"rol6 #ell 7ill lea "he "echnolo8* in us"r* an +e a 8oo e>a!$le "o "he co!$e"i"ors6 More "echnolo8* o% so%"7are an har 7are 7ill +e a'aila+le in "he ne>" cou$le *ears 7i"h less cos"6

Remote Environment
The in"erne" !ar9e" has +een e>$an in8 an e>$lo in8 across "he 8lo+e6 I" has 'arie +* !ar9e" se8!en" an alrea * has +een a +i8 hi" in "he U6S6 #ell 9no7s "ha" "he 7a* "o 8lo+ali(e "he co!$an* success%ull* is "hrou8h e-+usiness6 Anal*s"s a8ree "ha" e-+usiness is "he !os" si8ni%ican" "ri88er "o "he achie'e!en" o% econo!ic 8lo+ali(a"ion6

Functions
#ell Co!$u"er Cor$ora"ion is one o% "he 7orl Is lar8es" co!$u"er s*s"e!s or8ani(a"ions6 The* esi8n3 +uil an cus"o!i(e $ro uc"s an ser'ices "o sa"is%* a ran8e o% cus"o!er reBuire!en"s3 %ro! "he ser'er3 s"ora8e an $ro%essional ser'ices nee s o% "he lar8es" 8lo+al cor$ora"ions3 "o "hose cus"o!ers a" ho!e6 The* o +usiness irec"l* 7i"h cus"o!ers3 one a" a "i!e3 an +elie'e "he* o i" +e""er "han an*one on "he $lane"6 #ell is consi ere an in us"r* lea er ue "o "heir lar8e ran8e o% hi8h Buali"* $ro uc"s6 #ell Po7erE 8e ser'ers3 Po7er /aul" an #ell J EMC s"ora8e s*s"e!s an Po7er Connec"
P!(e No 9

Computer App%ic!tions to Business#II

s7i"ches are su$erior +uil in8 +loc9s %or en"er$rise co!$u"in86 #ell Precision 7or9s"a"ions3 O$"iPle> es9"o$s an La"i"u e no"e+oo9s !ee" "he 7i e-ran8in8 nee s o% +usinesses an or8ani(a"ions6 In i'i uals an s!all-+usinesses +ene%i" %ro! "he hi8h-$er%or!ance an 'alue o% #i!ension es9"o$s an Ins$iron no"e+oo9s6 #ell also o%%ers $rin"ers3 $ro&ec"ors3 A>i! han hel s an o"her co!$le!en"ar* $ro uc"s6 An "he* su$$or" "he! all 7i"h a +roa ran8e o% ser'ices esi8ne "o hel$ cus"o!ers si!$li%* co!$le> co!$u"in86 In shor"3 #ell is %ocuse on eli'erin8 !a>i!u! $er%or!ance 7i"h s"an ar s-+ase solu"ions 7hile ensurin8 "he ri8h" !i> o% cos" e%%ec"i'e solu"ions 7i"h 'alue a" e'er* le'el6 #ell is no" &us" in"eres"e in lo7 $rices3 +u" also in hi8h-$er%or!ance an soli relia+ili"*6

Competitive Analysis:
The co!$e"i"ors "o #ell are as %ollo7s- He7le""-Pac9ar 3 IBM3 an Sun Micros*s"e!s <Hoo'ers=6 HP an IBM $ose "he +i88es" "hrea" in co!$e"i"ion6 #ellDs sales o'er'ie7 has increase each *ear e>ce$" %or 1445 "o 144A6 In 1445 "he annual sales in !illions 7ere FK53@@@ an a !a&or increase in sales in 144A a" FA53AAA646 <Hoo'ers=6 In "er!s o% En"r* Barriers3 #ells irec" "o consu!ers sales a$$roach has increase "heir sales each *ear an "he* 7ill soon +e a!on8 "heir "o$ co!$e"i"ors6 Because o% "his a$$roach3 #ell has en"ere in"o "his hi8hl* co!$e"i"i'e !ar9e" in a uniBue 7a*6 The +i88es" en"r* +arrier "ha" #ell has "o %ace 7hen en"erin8 in"o "he "echnolo8* in us"r* is ha'in8 cus"o!ers 8ain "he "rus" o% co!$an* o'er "he !ore $o$ular 'e"eran co!$u"er co!$anies6 Ne'er"heless !an* o% co!$e"in8 co!$anies use a ran8e o% i%%eren" su$$liers6 Co!$e"i"or Sun Micros*s"e!s annual sales are lo7er "han #ellDs6 The* o%%er an online ser'ice 7here cus"o!ers can or er ser'ers3 an $ersonal co!$u"ers6 The* i%%er %ro! "he res" o% "he or8ani(a"ions is "ha" "he* o no" use "he Microso%" o$era"in8 s*s"e! 7hich is a 7ea9ness co!$are "o "he res"6 Sun oes no" see #ell as a !a&or co!$e"i"or3 in o+'ious $lace o% #ellG "he* see Microso%" as a !a&or co!$e"i"or alon8 7i"h He7le""-Pac9ar an IBM6 This +ein8 sai 3 #ell is $er%or!in8 in "he ri8h" irec"ion an sales are increasin8 ra!a"icall* o'er"i!e as !en"ione a+o'e3 an "he co!$e"i"ion e>is" +e"7een "he co!$anies an "ha" 7ha" !a9es #ell uniBue6 The increase in sales +e"7een 1445 an 144A $ro'es "he success %or "he or8ani(a"ion6

P!(e No 15

Computer App%ic!tions to Business#II

Customer Support:
#ell has crea"e !an* %ea"ures an ser'ices online "o hel$ "he cus"o!er see "he 7hole $urchasin8 $rocess clearl*6 The $re!ise o% #ellIs +usiness is sellin8 irec"l* "o cus"o!ers cus"o!ers "ell #ell e>ac"l* 7ha" "he* 7an" an #ell $ro'i es "he! 7i"h "he 8oo s irec"l*6 As 7ell as +ein8 a+le "o cus"o!i(e "he $ro uc"3 cus"o!ers can "rac9 "he $ro8ress o% "he or er as i" is $ro uce an eli'ere 6 This can hel$ "he cus"o!er see "he s"a8es o% "he $rocess an li9el* eli'er* "i!es6 Cus"o!ers can crea"e an 'ie7 "heir ser'ice recor s online6 This inclu es $ro uc" su$$or"3 shi$!en" an eli'er* a"es6 Each $urchase co!es 7i"h a ser'ice "a8 co e3 7hich can "rac9 "he !o el +ou8h" an i"s ser'ice reBuire!en"s6 This allo7s #ell cus"o!er ser'ice re$resen"a"i'es "o Buic9l* an e%%icien"l* han le reBues"s6 This le'el o% 1A hour cus"o!er ser'ice an %as" res$onse "i!e hel$s #ell +uil s"ron8 cus"o!er rela"ions3 7hich o% course is crucial %or "he co!$an* in i"s un ers"an in8 o% cus"o!er nee s6 I" is also a 'er* cos"-e%%ec"i'e 7a* o% $ro'i in8 sales an su$$or" cos" sa'in8s 7hich can +e $asse on in "he %or! o% +e""er $rices "o cus"o!ers6 Success e$en s 8rea"l* on "he e%%icien" !ana8e!en" o% "he 7e+si"e6 The cus"o!er !us" ha'e a con'enien" e>$erience 7hen sho$$in8 online an ha'e %ai"h "ha" #ell 7ill success%ull* co!$le"e "he or er an sa%e8uar %inancial e"ails6 Cus"o!ers nee "o +e co!%or"a+le usin8 $a$erless "ransac"ions 7i"hou" %ace-"o-%ace con"ac"6 I" is crucial "ha" cus"o!ers consi er $urchasin8 online as an al"erna"i'e "o "he "ra i"ional !e"ho o% 8oin8 in"o a re"ailer an +u*in8 a $ro uc" o%%-"he-shel%6 #ell is %ocuse on enhancin8 i"s i!a8e an rela"ionshi$s3 no" onl* 7i"h cus"o!ers3 +u" also 7i"h e!$lo*ees an "he 7i er co!!uni"*6 To o "his3 "he 7e+si"e is also use as a co!!unica"ion "ool %or ne7s3 $ress releases an 8eneral in%or!a"ion "o hel$ cus"o!ers3 e!$lo*ees3 "he !e ia an $ros$ec"i'e e!$lo*ees %in ou" !ore a+ou" "he co!$an*6

Impact o E!Commerce on "ell core process

:hen in"erne" "echnolo8* arri'e 3 #ell 7as Buic9 "o se" u$ "he eco!!erce $rocesses "ha" 7oul ena+le i" "o also sell irec"l* online "o cus"o!ers6 Sellin8 online allo7s "he 7hole $rocess "o +e au"o!a"e an !ore e%%icien"6 Since 5??L 7hen #ell o$ene i"s 7e+si"e 7776 ell6co! %or eco!!erce3 "he co!$an* has ha hu8e sales success6 B* 5??M "he co!$an* recor e F5 !illion in online sales6 B* 1444 "he co!$an*Is in"erne" sales ha reache F24 !illion a a*N I% 7e 8o

P!(e No 11

Computer App%ic!tions to Business#II

+ac9 "o our e>a!$le a+o'e3 "he cus"o!er3 Lia!3 7oul 8o "o #ellIs Irish 7e+si"e 7776 ell6ie "o +u* his no"e+oo9 co!$u"er6 The %ull $ro uc" ran8e is online 7i"h e"aile in%or!a"ion "o hel$ hi! !a9e his ecision6 He si!$l* %ollo7s "he eas*3 au"o!a"ic ins"ruc"ions "ha" co!e u$ on screen6 These allo7 hi! "o cus"o!i(e "he co!$u"er he 7an"s 7i"h "he %ea"ures he nee s6 He can increase3 sa*3 his har is9 s$ace an see "he i%%erence "ha" increase !a9es "o "he o'erall $rice6 Then he has 8i'en a 'arie"* o% o$"ions on ho7 "o $a*3 ei"her irec"l* online or3 'ia a cus"o!er ser'ice o$era"or6 There is e'en an au"o!a"e leasin8 o$"ion a'aila+le "hrou8h a %inancin8 arran8e!en" "ha" #ell has here 7i"h Per!anen" TSB6 Lia!Is or er is "hen $asse au"o!a"icall* "hrou8h "o "he $ro uc"ion e$ar"!en" a" #ellDs %ac"or* in Li!eric9 7here i" 7ill +e !anu%ac"ure "o his s$eci%ica"ion3 "es"e an shi$$e ou" "o hi!6 All o% "he s*s"e!s rela"in8 "o "he sale are one "hrou8h e-co!!erce- or er $lace!en"3 or er "rac9in83 $a*!en" $rocessin83 ins$ec"ion3 "es"in8 an eli'er*6 Si!ilarl*3 in"ernall* a" #ell3 "he 7hole $urchase an $rocure!en" o% !a"erials is au"o!a"e +e"7een #ell an i"s su$$liers6 A" 7776'aluechain6 ell6co!3 #ell shares in%or!a"ion 7i"h i"s su$$liers on a ran8e o% "o$ics3 inclu in8 $ro uc" Buali"* an in'en"or*6 The crucial +ene%i" is "he "o"al au"o!a"ion o% "he 7hole $rocess3 7hich no" onl* !a9es i" %as"er an !ore e%%icien"3 +u" also !uch !ore cos" e%%ec"i'e3 es$eciall* 8i'en "he 'olu!e o% +usiness in'ol'e 6 #ellIs 8lo+al 7e+si"e recei'es !ore "han 5 +illion $a8e reBues"s $er Buar"er a" @4 coun"r* si"es in 1@ lan8ua8es an 1L currencies6 #ellIs a$$roach "o e-co!!erce si!ula"es "he +ene%i"s o% %ace"o-%ace con"ac" +e"7een "he +u*er an "he seller6 This ensures "ha" s"a%% can +e %ocuse on eli'erin8 a Buali"* $ro uc" an $ro'i in8 e>cellen" cus"o!er ser'ice an su$$or"6

Competitive A#vantages
#urin8 "he he* a* o% "he "echnolo8* +oo! "hrou8hou" "he 5??4Is !an* co!$anies e>$erience enor!ous success %or a %e7 *ears3 ho7e'er 7i"hou" crea"in8 a soli in"ernal %ra!e7or9 !an* o% "hese co!$anies i no" sur'i'e6 An e>ce$"ion "o "ha" +usiness "ren is #ell3 7hich 7as a+le "o a ress i"s $ro+le!s associa"e 7i"h ra$i 8ro7"h3 an +uil i"sel% in"o a las"in8 $ro%i"a+le co!$an*6 #ell 7as a+le "o crea"e "his las"in8 $ro%i"a+ili"* 7i"h "hree essen"ial in8re ien"s- 56 O/ir"ual In"e8ra"ionP 16 Real 'alue cus"o!er ser'ice %ea"ures K6 Tailorin8 Manu%ac"urin8 "o cus"o!er nee s6

P!(e No 1)

Computer App%ic!tions to Business#II

In 5??K #ell reache a $oin" 7here i" ha 8ro7n "oo lar8e3 7i"hou" !a9in8 "he necessar* in"ernal i!$ro'e!en"s "o s"a* $ro%i"a+le6 #ell reache a OEure9aP !o!en" in 5??K 7hen i"s cash %lo7 san9 "o F14 !illion3 ne" inco!e 7as ne8a"i'e FA4 !illion3 an i"s !ar9e" share ha shrun9 consi era+l*6 B* +rin8in8 in se'eral seasone !ana8ers "o %ocus on s$eci%ic as$ec"s o% "he +usiness Michael #ell ho$e "ha" #ell coul +eco!e a s*nchroni(e 3 e%%icien"3 an $ro%i"a+le +usiness a8ain6 These i!$ro'e!en"s lea "o Michael #ells +rea9"hrou8h conce$" o% O'ir"ual in"e8ra"ion3P 7hich 8oes a s"e$ %ur"her "han "ra i"ional in"e8ra"ion +* connec"in8 "he ri8h" $ar"s "o8e"her in "he +usiness6 Fro! "his conce$" "hree 9e* in"e8ra"ions %or!e - 56 A s*!+io"ic rela"ionshi$ +e"7een #ell an i"s su$$liersG 16 Cus"o!ers lin9e irec"l* "o !anu%ac"urerG an K6 En user 7as lin9e "o $ro$er cus"o!er ser'ice assis"ance6 Each one o% "hese !easures ena+le cos"s cu"sG Buic9er eli'er "i!e3 an a !ore relia+le %inishe $ro uc"6 For ins"ance3 7i"h "his ne7 s*!+io"ic rela"ionshi$ 7i"h i"s su$$liers allo7e #ell "o "ri! "he nu!+er o% su$$liers i" use %ro! 14A "o AM in "heir Aus"in %acili"* +e"7een 5??2 an 5??@Q These in"e8ra"ions cause "he nu!+er o% a*s a PC sa" in in'en"or* %ro! K1 a*s "o M a*s6 B* cus"o!i(in8 or ers "he cus"o!er recei'e a $ro uc" "ailore "o "heir esires 7hile #ell sa'e !one* an "i!e on !anu%ac"urin86 Tailorin8 !anu%ac"urin8 "o a cus"o!erDs s$eci%ic nee s allo7e #ell "o in"e8ra"e $ro uc"ion sche ules 7i"h sales %lo7s3 asse!+le all $ar"s o% "he PC on si"e3 an ins"all "he s$eci%ic so%"7are "ha" "he cus"o!er reBues"e 6 These !anu%ac"urin8 in"erac"ions s$e u$ "he %inal $ro uc"s co!$le"ion "i!e "o "hir"*-si> hours6 The s7i%"ness o% "he !anu%ac"urin8 $rocess a e 'alue "o "he cus"o!er +* Buic9enin8 "he eli'er* "i!e6 As 7ell su$$liers 7an"e "o o +usiness 7i"h #ell +ecause "here in'en"or* le'els rarel* $ile u$6 The a 'an"a8es in "his chain o% in"e8ra"ions a e 'alue "o "he cus"o!erIs $ro uc"3 7hile also a in8 'alue "o #ell as a cor$ora"ion6 #ellDs cor$ora"e 'alue !a e i" one o% "he +es" in'es"!en"s in "he 5??4Is6 #ell i so!e"hin8 else o"her PC co!$anies 7ere no" oin8G s"ra"e8icall* "ar8e"in8 onl* "he cus"o!ers "he* 7an"e 6 B* e%inin8 "heir cus"o!er as a R9no7le 8ea+le PC userI #ell !a e "heir "as9 o% $ro'i in8 a PC easier6 Their cus"o!ers i no" nee "o 8o "o a re"ail s"ore "o 8ain 9no7le 8e a+ou" "heir $ro uc"6 This ena+le "he R#irec" Mo elI %or $urchasin8 PCIs "o 7or96 #ell %ur"her e>$an e i"s a+ili"* "o !ee" cus"o!er nee s +* classi%* cus"o!ers in"o s$eci%ic ca"e8ories6 Cus"o!ers 7ere ca"e8ori(e in"o Rela"ionshi$ +u*ers3 lar8e +usinesses an ins"i"u"ions3 an Transac"ion +u*ers3 s!all +usiness an ho!e PC users6 The Rela"ional +u*ers

P!(e No 19

Computer App%ic!tions to Business#II

!a e u$ a si8ni%ican"l* lar8er $or"ion o% #ellIs +usiness +u" also ha

i%%eren" nee s "han

Transac"ion +u*ers6 E'er* rela"ional +u*er 7as assi8ne a re$resen"a"i'e 7ho 8ui e "he +usiness an ins"i"u"ion "hrou8h each s"a8e o% "he +u*in8 e>$erience6 B* in"e8ra"in8 +o"h Rela"ional an Transac"ion +u*ers in"o "heir +usiness s*s"e! re$ea" $urchases 7ere Buic9 an eas*3 $urchasin8 his"or* coul +e consul"e 3 an %ollo7 u$ cus"o!er ser'ice 7as a+le "o +e !ore e%%ec"i'e6 #ellIs +usiness s"ruc"ure o% O'ir"ual in"e8ra"ionP allo7e i" "o e>cel in an incre i+l* co!$e"i"i'e in us"r*6 I"Ds co!$e"i"i'eness in "he in us"r* resul"e %ro! a hi8hl* e%%icien" +usiness !o el "ha" sou8h" ou" e'er* o$$or"uni"* "o 7or9 !ore $ro uc"i'el* 7i"hou" co!$ro!isin8 "he Buali"* o% "heir $ro uc"6 Pro uc"ion e%%icienc* lo7ere cos" 7hich in "urn $ro'i e #ell 7i"h lar8er $ro%i" !ar8ins6 As Por"ers Fi'e Forces e!ons"ra"es3 7hen +ar8ainin8 $o7er o% +u*ers is hi8h3 "he $o"en"ial %or $rice +a""les increases6 #ell co!+a"e %ailin8 in"o "he "ra$ o% a $rice +a""le +* !a9in8 a PC "ha" 7as a +e""er $ro uc" "han "he co!$e"i"ors3 *e" near "heir co!$e"i"orIs $rice6 There cos"s 7ere a+le "o s"a* co!$e"i"i'e 7hile eli'erin8 an e>ce$"ional $ro uc" +ecause "heir +usiness 9e$" in"ernal cos"s lo73 "hus sho7in8 "he e%%ec"i'eness o% O'ir"ual in"e8ra"ion6P Li9e Hon a3 #ell 7as a+le "o $ro'i e a "echnolo8icall* su$erior $ro uc" a" a reasona+le $rice6 As 7ell3 #ell 7as a+le "o e'a e a $rice 7ar +ecause i"s cus"o!ers 7ere a7are o% "he "echnolo8ical 'alue in a #ell PC6

"e inable mar$et

The co!$u"er !ar9e" has 'arious $ro uc"s 7hich can +asicall* +e classi%ie in"o so%"7are an har 7are ca"e8ories 7here each are su+- i'i e in"o 'arious $ro uc" se8!en"s6 I" is clear "ha" #ell is %ocuse on "he co!$u"er har 7are !ar9e" 7here i" s"ar"e 7i"h "he es9"o$ $ersonal co!$u"er as i"s ini"ial $ro uc" se8!en"6 Fur"her $ro uc" se8!en"s such as no"e+oo9s3 ser'ers an co!$u"er $eri$herals ha'e +een a e "o i"s !ar9e"in8 !i> as re'enue increase 6 In a i"ion3 #ell has $ar"nere 7i"h !a&or cor$ora"ions such as Microso%" "o ensure "heir $ro uc"s are eBui$$e 7i"h "he la"es" so%"7are as $er cus"o!ersD nee s6

P!(e No 1,

Computer App%ic!tions to Business#II

#ell !ainl* uses cus"o!er se8!en"a"ion in i"s !ar9e" s"ra"e8* alon8 7i"h "he $ro uc" se8!en"a"ion 7here i" is "ar8e"in8 se'eral !ar9e" se8!en"s an esi8nin8 se$ara"e $ro uc"s or o%%ers %or "he!6 On one han 3 8eo8ra$hicall*3 #ell has se8!en"e "he !ar9e" in"o "he USSA!ericas3 EMEA an Asia Paci%ic-Ja$an 7here each area has i%%eren" $ricin8 an !ar9e"in8 s"ra"e8ies6 On "he o"her han 3 e!o8ra$hicall*3 "here is no a8e3 8en er or race +ias +u" inco!e3 occu$a"ion an e uca"ion $la* a role in eci in8 "he cus"o!er nee s an hence "he $ro uc" o%%er6 I" is also 7or"h no"in8 "ha" %ro! a +eha'ioural 'ie73 #ell %ocuses on "he +ene%i"s sou8h" +* consu!ers such as lo7 $rice an 8oo Buali"* an ser'ice6 I" also care%ull* selec"s cus"o!ers 7i"h rela"i'el* $re ic"a+le $urchasin8 $a""erns an lo7 ser'ice cos"s3 allo7in8 i"sel% an o$$or"uni"* "o e'elo$ a core co!$e"ence in "ar8e"in8 an 9ee$in8 a s$eci%ic a"a+ase %or "ar8e" cus"o!ers6

I#enti iable Revenue %o#el

Throu8h sales "he* 8enera"e re'enue6

"ell &rivacy security &olicy

#ell res$ec"s *our $ri'ac*6 Across our +usiness3 aroun "he 7orl 3 7e 7ill onl* collec"3 s"ore an use *our $ersonal in%or!a"ion %or e%ine $ur$oses6 :e use *our in%or!a"ion "o su$$or" an enhance our rela"ionshi$ 7i"h *ou3 %or e>a!$le3 "o $rocess *our $urchase3 $ro'i e ser'ice an su$$or"3 an share $ro uc"3 ser'ice an co!$an* ne7s an o%%erin8s 7i"h *ou6 :e o no" sell

P!(e No 1-

Computer App%ic!tions to Business#II

*our $ersonal in%or!a"ion6 :e onl* share *our $ersonal a"a ou"si e "he #ell %a!il* o% co!$anies 7i"h *our consen"3 as reBuire +* la7 or "o $ro"ec" #ell3 i"s cus"o!ers3 or "he $u+lic3 or 7i"h co!$anies "ha" hel$ #ell %ul%ill i"s o+li8a"ions 7i"h *ou3 an "hen onl* 7i"h $ar"ners 7ho share #ellDs co!!i"!en" "o $ro"ec"in8 *our $ri'ac* an a"a6 A" an* "i!e *ou !a* con"ac" #ell 7i"h an* $ri'ac* Bues"ions or concerns *ou !a* ha'e6 .ou also !a* as9 a" an* "i!e "o see "he $ersonal a"a *ou ha'e 8i'en us an reBues" correc"ion or ele"ion6 :e s"ri'e "o $ro"ec" "he securi"* o% *our $ersonal a"a +* use o% a$$ro$ria"e !easures an $rocesses6

&rivacy an# "ata Security

A" #ell3 *our ri8h" "o $ri'ac* an a"a securi"* is a $ri!ar* concern6 Tha"Ds 7h*3 7hen *ou 'isi"

ell6co!3 7e hel$ *ou !ain"ain con"rol o'er *our $ersonal a"a on "he In"erne"6 Belo7 are "he 8ui elines 7e use %or $ro"ec"in8 "he in%or!a"ion *ou $ro'i e us urin8 a 'isi" "o our In"erne" si"e or 7hen *ou use our online su$$or" o%%erin8s such as su$$or"6 ell6co! or su$$or" a$$lica"ions loa e on *our co!$u"er6 Please re%er "o *our 7arran"* s"a"e!en" or #ellDs Re"urn Polic* %or $olicies "ha" a$$l* "o in%or!a"ion con"aine on har ri'es re"urne "o #ell6 O"her #ell an #ell co-+ran e si"es !a* o$era"e un er "heir o7n $ri'ac* an securi"* $olicies6 /isi" h""$-SS7776nclne"6or8S"echnolo8*Sessen"ialsS "o learn !ore a+ou" ho7 "o $ro"ec" *our $ri'ac* on "he In"erne" "hrou8h a consu!er e uca"ion ca!$ai8n calle Online E-ssen"ials3 e'elo$e +* #ell in $ar"nershi$ 7i"h "he Na"ional Consu!ers Lea8ue6 #ell is a $rou $ar"ici$an" in "he BBB OnLineT Pri'ac* Pro8ra!6 The BBB OnLine Pri'ac* Pro8ra! is +ac9e +* an or8ani(a"ion no"e %or i"s e>$er"ise an e>$erience in con uc"in8 success%ul na"ional sel%-re8ula"ion $ro8ra!s--"he Council o% Be""er Business Bureaus6 The !ission o% BBB Online is "o $ro!o"e "rus" an con%i ence on "he In"erne" +* a 'oca"in8 e"hical online +usiness $rac"ices #ell onl* as9s %or s$eci%ic "*$es o% $ersonal in%or!a"ion In a %e7 areas on our :e+ si"e an online cus"o!er su$$or" "ools3 7e as9 *ou "o $ro'i e in%or!a"ion "ha" 7ill ena+le us "o enhance *our si"e 'isi"3 "o assis" *ou 7i"h $urchase an

P!(e No 1/

Computer App%ic!tions to Business#II

"echnical su$$or" issues or "o %ollo7 u$ 7i"h *ou a%"er *our 'isi"6 I" is co!$le"el* o$"ional %or *ou "o $ar"ici$a"e6 For e>a!$le3 7e reBues" in%or!a"ion %ro! *ou 7hen *ou56 Re8is"er on ell6co! 16 ReBues" a Buo"e K6 Place an or er A6 Pro'i e %ee +ac9 in an online sur'e* 26 Par"ici$a"e in a s7ee$s"a9es or o"her $ro!o"ional o%%er L6 ReBues" e-!ail no"i%ica"ion o% *our or er s"a"us <calle HOr er :a"chH= M6 Su+scri+e "o a ne7sle""er or a !ailin8 lis" @6 ReBues" assis"ance %ro! our HPro uc" A 'isorH ?6 Fill ou" a su$$or" reBues" In%or!a"ion 7e !a* reBues" inclu es *our na!e3 e-!ail a ress3 $hone nu!+er3 a ress3 "*$e o% +usiness3 cre i" car e"ails3 cus"o!er $re%erence in%or!a"ion3 cus"o!er nu!+er an ser'ice "a8 nu!+er3 as 7ell as o"her si!ilar $ersonal in%or!a"ion6 Shoul *ou choose "o a$$l* %or cre i" "hrou8h our %inancial ser'ice $ro'i ers3 7e !a* also as9 %or *our social securi"* nu!+er an o"her in%or!a"ion "o $rocess *our cre i" reBues"6 I% 7e e'er as9 %or si8ni%ican"l* i%%eren" in%or!a"ion 7e 7ill in%or! *ou6 #ell onl* uses *our $ersonal in%or!a"ion %or s$eci%ic $ur$oses The in%or!a"ion *ou $ro'i e 7ill +e 9e$" con%i en"ial an use "o su$$or" *our cus"o!er rela"ionshi$ 7i"h #ell6 A!on8 o"her "hin8s3 7e 7an" "o hel$ *ou Buic9l* %in in%or!a"ion on ell6co! an aler" *ou "o $ro uc" u$8ra es3 s$ecial o%%ers3 u$ a"e in%or!a"ion an o"her ne7 $ro uc"s an ser'ices %ro! #ell6 A8en"s or con"rac"ors o% #ell 7ho ha'e access "o *our $ersonal in%or!a"ion an $ros$ec" in%or!a"ion are reBuire "o 9ee$ "he in%or!a"ion con%i en"ial an no" use i" %or an* o"her $ur$ose "han "o carr* ou" "he ser'ices "he* are $er%or!in8 %or #ell6 #ell !a* enhance or !er8e *our in%or!a"ion collec"e a" i"s si"e 7i"h a"a %ro! "hir $ar"ies %or $ur$oses o% !ar9e"in8 $ro uc"s or ser'ices "o *ou6

P!(e No 1;

Computer App%ic!tions to Business#II

In a i"ion3 #ell !a* +e reBuire "o isclose $ersonal in%or!a"ion in connec"ion 7i"h la7 en%orce!en"3 %rau $re'en"ion3 re8ula"ion3 an o"her le8al ac"ion or i% #ell reasona+l* +elie'es i" is necessar* "o o so "o $ro"ec" #ell3 i"s cus"o!ers3 or "he $u+lic6 .ou can o$"-ou" o% #ellDs !ar9e"in8 lis" a" an* "i!e Perio icall*3 7e !a* sen *ou in%or!a"ion a+ou" our 'arious $ro uc"s an ser'ices3 or o"her $ro uc"s an ser'ices 7e %eel !a* +e o% in"eres" "o *ou6 Onl* #ell <or a8en"s 7or9in8 on +ehal% o% #ell an un er con%i en"iali"* a8ree!en"s= 7ill sen *ou "hese irec" !ailin8s6 I% *ou o no" 7an" "o +e inclu e on #ellDs !ar9e"in8 lis"3 si!$l* "ell us 7hen *ou 8i'e us *our $ersonal in%or!a"ion6 Or3 a" an* "i!e *ou can easil* o$"-ou" o% #ellDs !ar9e"in8 lis" or u$ a"e *our in%or!a"ion +* clic9in8 here6 #ell 7ill no" isclose *our $ersonal in%or!a"ion "o an* ou"si e or8ani(a"ion %or i"s use in !ar9e"in8 7i"hou" *our consen" In%or!a"ion re8ar in8 *ou <such as na!e3 a ress an $hone nu!+er= or *our or er an "he $ro uc"s *ou $urchase 7ill no" +e 8i'en or sol "o an* ou"si e or8ani(a"ion %or i"s use in !ar9e"in8 or solici"a"ion 7i"hou" *our consen"6 .our in%or!a"ion !a* +e share 7i"h a8en"s or con"rac"ors o% #ell %or "he $ur$ose o% $er%or!in8 ser'ices %or #ell6

Internet Commerce
The online s"ore a" ell6co! is esi8ne "o 8i'e *ou o$"ions concernin8 "he $ri'ac* o% *our cre i" car in%or!a"ion3 na!e3 a ress3 e-!ail an an* o"her in%or!a"ion *ou $ro'i e us6 #ell is co!!i""e "o a"a securi"* 7i"h res$ec" "o in%or!a"ion collec"e on our si"e6 :e o%%er "he in us"r* s"an ar securi"* !easures a'aila+le "hrou8h *our +ro7ser calle SSL encr*$"ion3 <$lease see #ellDs S"ore Securi"* $a8e %or e"ails on "hese securi"* !easures=6 I% a" an* "i!e *ou 7oul li9e "o !a9e a $urchase3 +u" o no" 7an" "o $ro'i e *our cre i" car in%or!a"ion online3 *ou !a* con"ac" a sales re$resen"a"i'e o'er "he "ele$hone6 Si!$l* call 5-@44-:::-#ELL6 I"

P!(e No 10

Computer App%ic!tions to Business#II

has al7a*s +een a #ell $rac"ice "o con"ac" cus"o!ers in "he e'en" o% a $o"en"ial $ro+le! 7i"h *our $urchase or an* nor!al +usiness co!!unica"ion re8ar in8 *our $urchase6

Customi'e# Experience
:e use "echnolo8* "o hel$ us eli'er cus"o!i(e 'isi"or e>$eriences6 A" #ell3 7e $ri!aril* use Hcoo9iesH "o hel$ us e"er!ine 7hich ser'ice an su$$or" in%or!a"ion is a$$ro$ria"e "o *our !achine an "o !ain"ain *our sho$$in8 e>$erience in our online s"ore6 Our use o% "his "echnolo8* oes no" !ean "ha" 7e au"o!a"icall* 9no7 an* in%or!a"ion a+ou" *ou6 :e !i8h" +e a+le "o ascer"ain 7ha" "*$e o% co!$u"er *ou are usin83 +u" +e*on "ha"3 our use o% coo9ies is esi8ne onl* "o $ro'i e *ou 7i"h a +e""er e>$erience 7hen usin8 7776 ell6co!6 #ell has no esire or in"en" "o in%rin8e on *our $ri'ac* 7hile usin8 "he ell6co! si"e6 For !ore in%or!a"ion a+ou" our use o% coo9ies3 $lease clic9 here6

(eb )eacons
:e3 or "hir $ar"ies ac"in8 on our +ehal%3 !a* use 7e+ +eacons on our si"e3 in our e-!ails3 in our a 'er"ise!en"s on o"her si"es3 or in our a 'er"ise!en"s in o"hersD e-!ails6 A 7e+ +eacon is an elec"ronic i!a8e "ha" can +e use "o reco8ni(e a coo9ie on *our co!$u"er 7hen *ou 'ie7 a 7e+ $a8e or e-!ail6 :e+ +eacons hel$ us !easure "he e%%ec"i'eness o% our si"e an our a 'er"isin8 in 'arious 7a*s3 %or e>a!$le3 +* coun"in8 "he nu!+er o% in i'i uals 7ho 'isi" our si"e %ro! a $ar"icular a 'er"ise!en" or !a9e a $urchase %ro! our si"e a%"er 'ie7in8 a $ar"icular a 'er"ise!en" as 7ell as +* "ellin8 us 7hen a 7e+ $a8e is 'ie7e an $ro'i in8 a escri$"ion o% "he $a8e 7here "he 7e+ +eacon is $lace 6 :e+ +eacons also hel$ us !easure "he e%%ec"i'eness o% our e-!ail ca!$ai8ns3 %or e>a!$le3 +* coun"in8 "he nu!+er o% in i'i uals 7ho o$en or ac" u$on an e-!ail !essa8e3 e"er!inin8 7hen an e-!ail !essa8e is o$ene an "i!es an e-!ail is %or7ar e 6 The in%or!a"ion 7e collec" !a* inclu e so!e li!i"e $ersonal in%or!a"ion3 an 7e+ +eacons allo7 us "o reco8ni(e users +* accessin8 #ell coo9ies6 :e !a* also co!+ine "he in%or!a"ion "ha" 7e collec" "hrou8h 7e+ +eacons 7i"h o"her $ersonal in%or!a"ion 7e ha'e collec"e %ro! e"er!inin8 ho7 !an*

P!(e No 19

Computer App%ic!tions to Business#II

*ou6 :e use all o% "his in%or!a"ion "o +e""er "ailor our !ar9e"in8 "o *ou an !a* use "his in%or!a"ion %or o"her $ur$oses3 such as "o ena+le a sho$$in8 car"3 cus"o!i(e con"en" on our 7e+si"e an in"ernal research $ur$oses6 :e o no" allo7 "hir $ar"ies "o $lace "heir o7n 7e+ +eacons on our si"e or in our a 'er"ise!en"s6 :e 7ill no" share an* $ersonal in%or!a"ion collec"e "hrou8h 7e+ +eacons 7i"h an* "hir $ar"*3 e>ce$" %or ser'ice $ro'i ers 7ho ac" on our +ehal% an 7ho are con"rac"uall* $rohi+i"e %ro! an* o"her use or isclosure o% "he in%or!a"ion6 .ou can !a9e so!e 7e+ +eacons unusa+le +* re&ec"in8 coo9ies6

T*ir#!&arty Sites
Please +e a7are "ha" o"her 7e+ si"es "ha" !a* +e accesse "hrou8h our si"e !a* collec" $ersonall* i en"i%ia+le in%or!a"ion a+ou" *ou6 The in%or!a"ion $rac"ices o% "hose "hir -$ar"* 7e+ si"es lin9e "o #ell6co! are no" co'ere +* "his $ri'ac* s"a"e!en"6 :e 8enerall* use "he HH s*!+ol "o !ar9 lin9s "ha" 8o "o "hir -$ar"* si"es6 .ou are solel* res$onsi+le %or !ain"ainin8 "he secrec* o% *our $ass7or s or an* accoun" in%or!a"ion6 Please +e care%ul an res$onsi+le 7hene'er *ouDre online6 I% *ou $os" $ersonal in%or!a"ion online "ha" is accessi+le "o "he $u+lic3 *ou !a* recei'e unsolici"e !essa8es %ro! o"her $ar"ies in re"urn6 :hile 7e s"ri'e "o $ro"ec" *our $ersonal in%or!a"ion3 #ell canno" ensure or 7arran" "he securi"* o% an* in%or!a"ion *ou "rans!i" "o us3 an *ou o so a" *our o7n ris96

C*il#ren+s &rivacy ,Age -. an# /n#er0

#ell "a9es chil renDs $ri'ac* seriousl*6

P!(e No )5

Computer App%ic!tions to Business#II

#ell oes no" see9 "o collec" $ersonal in%or!a"ion a+ou" chil ren "hrou8h i"s :e+ si"e6 #ell oes no" con i"ion a chil Ds $ar"ici$a"ion in an ac"i'i"* on "he isclosure o% !ore $ersonal in%or!a"ion "han is reasona+l* necessar* "o $ar"ici$a"e in "he ac"i'i"*6 I% 7e +eco!e a7are "ha" a $erson su+!i""in8 $ersonal in%or!a"ion "o us "hrou8h an* $ar" o% our :e+ si"e is a chil 3 7e ele"e "he in%or!a"ion as soon as 7e isco'er i" an $ur$ose3 nor o 7e isclose i" "o "hir $ar"ies6 Since 7e o no" see9 "o collec" an* $ersonal in%or!a"ion a+ou" chil ren3 an 7e ele"e an* in%or!a"ion collec"e ina 'er"en"l* as soon as 7e isco'er "ha" a chil has su+!i""e i"3 7e "*$icall* re"ain no in%or!a"ion a+ou" chil ren "ha" coul +e re'ie7e or ele"e 6 I% a $aren" reBues"s re'ie7 or ele"ion o% in%or!a"ion a+ou" "heir chil +e%ore 7e ha'e isco'ere an ele"e "he in%or!a"ion3 "hen 7e 7ill o% course honor "ha" reBues"6 o no" use i" %or an*

Ot*er (eb sites

#ellDs :e+ si"e con"ains lin9s "o o"her :e+ si"es "ha" are no" o$era"e +* #ell6 #ell is no" res$onsi+le %or "he $ri'ac* $rac"ices o% "he :e+ si"es "ha" i" oes no" o$era"e6 So!e $ar"s o% "he :e+ si"e are ani!a"e usin8 'arious o7nloa a+le a$$lica"ions3 such as Macro!e iaDs Shoc97a'eSFlash6 :e also !a9e 'i eo a'aila+le "hrou8h RealNe"7or9Ds Me ia-Pla*er3 an use "he 'i eo hos"in8 ser'ices o% Broa cas"6co!6 Fu"ures-Careers3 Macro!e ia3 RealNe"7or9s3 an Broa cas"6co! o$era"e un er "heir o7n $ri'ac* an securi"* $olicies3 an "he 7a* "he* !a* collec" an use in%or!a"ion can +e

&ayment %et*o#s
Cre i"S e+i" car Pa* 7i"h Pa*Pal

P!(e No )1

Computer App%ic!tions to Business#II Pa* 7i"h ell +usiness cre i" ;i%" car

%ar$eting Mix Strategy

&ro#uct:
#ell o%%ers i"s cus"o!ers a 7i e ran8e o% co!$u"er s*s"e!s 7or9s"a"ions3 ser'ers3 es9"o$ co!$u"ers an no"e+oo9 co!$u"ers as 7ell as s"ora8e $ro uc"s an solu"ions6

#ell also e>"en e "heir selec"ion +* a

in8 co!$u"er har 7are $eri$herals3

co!$u"er so%"7are as 7ell as su$$or" ser'ices6 Ne'er "he less3 #ell oes no" !anu%ac"ure "he co!$onen"s o% i"s %inal $ro uc"s3 +u" ins"ea i" relies on a nu!+er o% "rus"e su$$liers 7ho ha'e con'enien" 7arehouse %acili"ies 7i"hin 52 !inu"es o% #ellDs $ro uc"ion cen"res6 Anal*s"s a" #a"a !oni"or an /alaniu! associa"es ha'e +een cri"ical a+ou" "his a$$roach an consi ere #ellDs e$en ence on "hir $ar"* su$$liers as a !a&or "hrea" "o i"s lon8 "er! success3 ho7e'er )rae!er an Tuc97ell ha'e $raise "his cos" e%%ec"i'e a$$roach an i"s $osi"i'e i!$ac" on #ellDs $ricin8 s"ra"e8ies6

&lace:
The $lace or is"ri+u"ion channel is one o% #ellDs is"inc" a 'an"a8es in "heir !ar9e"in8 !i>6 This is +ecause #ell uses a irec" channel !o el 7here i" sells i"s $ro uc"s irec"l* "o "he cus"o!er 7i"hou" nee %or a is"ri+u"or or a !i le !an6 Thou8h i" ini"iall* s"ar"e 7i"h sellin8 $ro uc"s o'er "he $hone usin8 a "oll %ree nu!+er "ha" cus"o!ers can call %ree o% char8e3 "he* 7ere "he %irs" "o a o$" a 'ance "echnolo8* an use "he in"erne" as a irec" channel "o sell i"s $ro uc"s6

The irec" channel !o el ena+le #ell "o re uce cos"s an !ini!ise in'en"ories an so i" has +een a+le "o $ass "hese sa'in8s "o cus"o!ers in "he %or! o% lo7er $rices6

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Computer App%ic!tions to Business#II

&rice:
Price is "he a!oun" o% !one* char8e %or a $ro uc" or ser'ice3 or "he su! o% "he 'alues consu!ers e>chan8e %or "he +ene%i"s o% ha'in8 or usin8 "he $ro uc" or ser'ice6 <)o"ler e" al63 Princi$les o% !ar9e"in83 %i%"h Euro$ean e i"ion3 $6 LK?3 Pearson 144@=

In "his case #ell $ro'i es hi8h Buali"* co!$u"er s*s"e!s a" "he lo7es" $rice "o !a"ch "he cus"o!erDs e>$ec"a"ion o% 'alue %or !one*6 I" is also a+le "o su$$l* $ro uc"s a" lo7 $rice +* cu""in8 ou" all cos"s o% !anu%ac"urin8 $ar"s as 7ell as cos"s associa"e 7i"h re"ailers an is"ri+u"ors6

As $ricin8 re!ains a !a&or %ac"or in "he cus"o!erDs +u*in8 ecision3 #ell uses "he in"erne" "o 8e" a reasona+l* accura"e i ea o% "he !ar9e"Ds su$$l* an re%lec"in8 on i"s $rice chan8es an $ro!o"ions6 e!an 3 hence

&romotion:
Pro!o"ion is "he !os" i!$or"an" co!$onen" o% "he %our PDs so i" is crucial "o un ers"an an +e a+le "o $ro!o"e a $ro uc"6 Here i" can +e seen ho7 #ell uses !an* i%%eren" $ro!o"ional !e"ho s "o !ar9e" "heir $ro uc"s3 such as a 'er"isin8 on "ele'ision3 on "he in"erne"3 in !a8a(ines an ne7s$a$ers as 7ell as irec" !ail a ca!$ai8ns6 I" e'en uses s$onsorshi$s in $ro%essional s$or"s as 7ell as $ro uc" $lace!en"s in %il!s an "ele'ision in "he !ar9e"in8 "echniBues6 Perreaul" e" al su88es" "ha" irec" sales channels an irec" cus"o!er rela"ionshi$ a$$roach has ena+le #ell "o %ull* un ers"an i"s cus"o!erDs reBuire!en"s an $re%erences as 7ell as "o !ain"ain i"s co!$e"i"i'e e 8e6 <Perreaul" e" al3 Essen"ials o% !ar9e"in83 51"h e i"ion3 144?=

P!(e No )9

Computer App%ic!tions to Business#II

I" is clear %ro! "he a+o'e e"ails "ha" #ellDs curren" !ar9e"in8 !i> is one o% "he !ain %ac"ors "ha" con"ri+u"e "o i"s co!$e"i"i'e a 'an"a8e6 The 7a* "he co!$an* is a+le "o use i"s !ar9e"in8 s"ra"e8* shoul allo7 "he co!$an* "o le'era8e i"s co!$e"i"i'e a 'an"a8e in i"s core !ar9e" se8!en"s6 Ho7e'er3 #ell shoul "a9e a 'an"a8e o% "he !ar9e" o$$or"uni"ies "ha" coul $o"en"iall* increase "he +usiness re'enue an s"ren8"hen i"s !ar9e" $osi"ion6 These o$$or"uni"ies 7ill reBuire chan8es in "he !ar9e" s"ra"e8* in or er "o %ul%il "he !ar9e" e!an s3 hence increasin8 $ro%i"s an !ar9e" share6 These su88es"e chan8es are %ur"her ela+ora"e in "he %ollo7in8 sec"ion6

"istribution Strategy
#irec" !o es in co!$resse $ro uc" $ro uc"ion lines3 su$$le!en"e +* online $urchase a" 8rea" e'elo$!en" o% i"s irec" sales !o el6

1overnment Regulations
Our +usiness is su+&ec" "o re8ula"ion +* 'arious %e eral an s"a"e 8o'ern!en"al a8encies6 Such re8ula"ion inclu es "he ra io %reBuenc* e!ission re8ula"or* ac"i'i"ies o% "he U6S6 Fe eral Co!!unica"ions Co!!issionG "he an"i-"rus" re8ula"or* ac"i'i"ies o% "he U6S6 Fe eral Tra e Co!!ission3 "he U6S6 #e$ar"!en" o% Jus"ice3 an "he Euro$ean UnionG "he consu!er $ro"ec"ion la7s an %inancial ser'ices re8ula"ions o% "he U6S6 Fe eral Tra e Co!!ission an 'arious s"a"e 8o'ern!en"al a8enciesG "he e>$or" re8ula"or* ac"i'i"ies o% "he U6S6 #e$ar"!en" o% Co!!erce an "he U6S6 #e$ar"!en" o% Treasur*G "he i!$or" re8ula"or* ac"i'i"ies o% U6S6 Cus"o!s an Bor er Pro"ec"ionG "he $ro uc" sa%e"* re8ula"or* ac"i'i"ies o% "he U6S6 Consu!er Pro uc" Sa%e"* Co!!issionG "he in'es"or $ro"ec"ion an ca$i"al !ar9e"s re8ula"or* ac"i'i"ies o% "he Securi"ies an E>chan8e Co!!issionG an "he en'iron!en"al3 e!$lo*!en" an la+or3 an o"her re8ula"or* ac"i'i"ies o% a 'arie"* o% 8o'ern!en"al au"hori"ies in each o% "he coun"ries in 7hich 7e con uc" +usiness6 :e 7ere no" assesse an* !a"erial en'iron!en"al %ines3 nor i 7e ha'e an* !a"erial en'iron!en"al re!e ia"ion or o"her en'iron!en"al cos"s3 urin8 Fiscal 14546

Entry )arriers
En"r* +arriers are uniBue %or each in us"r* an si"ua"ion3 an can chan8e o'er "i!e6 Mos" +arriers s"e! %ro! irre'ersi+le resource co!!i"!en"s *ou !us" !a9e in or er "o en"er a !ar9e"6 For e>a!$le3 i% "he e>is"in8 +usinesses ha'e 7ell-es"a+lishe +ran na!es an %ull* i%%eren"ia"e
P!(e No ),

Computer App%ic!tions to Business#II

$ro uc"s3 as a $o"en"ial !ar9e" en"ran" *ou 7ill nee "o un er"a9e an e>$ensi'e !ar9e"in8 ca!$ai8n "o in"ro uce *our $ro uc"s6 Barriers "o en"r* are usuall* hi8her %or co!$anies in'ol'e in !anu%ac"urin8 "han %or co!$anies "ha" $ro'i e a ser'ice +ecause "here is o%"en a si8ni%ican" e>$ense in se""in8 u$ a $ro uc"ion %acili"*6 Ano"her "*$e o% en"r* +arrier is re8ula"or*6 To $ro uce or8anic %oo "here is a "hree-*ear 7ai" +e%ore lan !a* +e cer"i%ie 6 #urin8 "he 7ai"in8 $erio 3 $ro ucers !us" raise "he cro$ as or8anic3 +u" !a* no" !ar9e" i" as or8anic un"il "he "hree*ear Ocleansin8 $rocessP o% "he lan is co!$le"e O'erco!in8 +arriers "o en"r* !a* in'ol'e e>$en in8 si8ni%ican" resources o'er an e>"en e $erio o% "i!e6 In us"ries +ase on $a"en"a+le "echnolo8* !a* reBuire an es$eciall* lon8-"er! co!!i"!en"3 7i"h *ears o% research an "es"in83 +e%ore $ro uc"s can +e in"ro uce an co!$e"e6

Target %ar$ets
Current %ar$et
#ell curren"l* has a nu!+er o% co!$u"ers "ha" "ar8e" 1 $ar"icular !ar9e"s6 56 Lar8e- "o Mi -Si(e Business KL "o 24 *ear ol :hi"e !ales U$$er-Mi le "o U$$er Class 16 Consu!ers3 S"u en"s3 S!all Ho!e O%%ice 5@ "o K2 *ear ol :hi"e !ales Mi le Class The cor$ora"ion !ar9e"s cer"ain +ran na!es "o i%%eren" consu!er se8!en"s6 I" T*$icall* sells "he O$"i$le>3 La"i"u e3 an Precision na!es "o !i an lar8e +usiness Cus"o!ers3 7here "he co!$an*Ds a 'er"isin8 e!$hasi(es lon8 li%e c*cle3 relia+ili"* an Ser'ice a+ili"*6 The #i!ension3 Ins$iron3 an CPS +ran s ha'e an orien"a"ion "o7ar s consu!ers3 S"u en"s3 an s!all ho!e o%%ice en'iron!en"s3 e!$hasi(in8 'alue3 $er%or!ance an E>$an a+ili"* <lar8e %ocus in "his consu!er +ase=6

P!(e No )-

Computer App%ic!tions to Business#II

#ell recen"l* rein"ro uce "he #ell CPS +ran "o "ar8e" "he lucra"i'e 8a!in8 Mar9e"6 #ell CPS es9"o$ s*s"e!s use +lue ra"her "han "he +lac9 cases %oun on ne7er #ell PCs6

&rospective Target %ar$ets

Our "ea! 7ill re%ocus "he a 'er"isin8 an !ar9e"in8 "o "ar8e" 1 $ar"icular !ar9e"s6 56 :o!en 16 Minori"ies <$ar"icularl* A%rican-A!ericans3 La"inos3 an Asians= Bo"h inU Lar8e "o Mi -Si(e Business KL "o 24 *ear ol U$$er-Mi le "o U$$er Class U Consu!ers3 S"u en"s3 S!all Ho!e O%%ice 5@ "o K2 *ear ol Mi le Class :e 7ill s"a* in "he sa!e e!o8ra$hics %or "he +usiness an consu!er class as #ell is curren"l* $ursuin86 The onl* i%%erence is "ha" 7e 7ill re$lace "he H7hi"e !aleH in each ca"e8or* 7i"h 7o!en an Sor !inori"ies6 The reasonin8 +ehin "his is "ha" 7o!en are +eco!in8 eBual ecision !a9ers in "he ho!e an in +usiness an !inori"ies "en "o sho7 +ran lo*al"*6 Since "he co!$onen"s o% #ell co!$u"ers are si!ilar "o o"her PC !anu%ac"urers <+ecause "he co!$onen"s rarel* 'ar* "ha" ras"icall* across !anu%ac"urers= #ell nee s "o +uil "he curren" cus"o!er +ase an !ain"ain a s"ron8 cus"o!er lo*al"*6

%ar$et Tren#s
The !ar9e" %or la$"o$ co!$u"ers has is"in8uishe i"sel% as one o% "he %as"es" 8ro7in8 se8!en"s o% "he co!$u"er in us"r*6 Throu8hou" i"s 8ro7"h an e'elo$!en"3 "his !ar9e"3 li9e !an* o"hers3 has chan8e a 8rea" eal as a resul" o% cus"o!er e!an s6 In an e%%or" "o ca"er "o "hese e!an s3 co!$anies li9e #ell loo9 "o !ar9e" "ren s "o ai in "he e'elo$!en" o% ne7 $ro uc"s6 In i"s !os" recen" s"a8es3 "he la$"o$ !ar9e" has +een s$eci%icall* in%luence +* nu!+er "ren s6

P!(e No )/

Computer App%ic!tions to Business#II

;enerall*3 "he o'erall !ar9e" %or PCDs is +ein8 in%luence +* !an* o% "hese "ren s6 One in $ar"icular3 ho7e'er3 is a%%ec"in8 "he !ar9e" !ore "han an* o"her6 Si!$l* 3 cus"o!ers are +eco!in8 !ore e uca"e a+ou" "heir $urchases6 Co!$u"ers are +ein8 sol less "o %irs"-"i!e +u*ers3 an !uch !ore "o consu!ers 7ho ha'e $urchase $ersonal co!$u"ers a" leas" once +e%ore <Ma"chin8 #ell3 $a8e A=6 As an increasin8 nu!+er o% cus"o!ers +eco!e !ore 9no7le 8ea+le a+ou" co!$u"ers3 o"her "ren s are +e8innin8 "o "a9e sha$e6 As a resul" o% "his consu!er e uca"ion3 +u*ers 7an" increase cus"o!i(a"ion o% $ersonal co!$u"ers6 The 8ro7in8 a!oun" o% 9no7le 8e a!on8 consu!ers is crea"in8 "he a+ili"* %or +u*ers "o is"in8uish "heir o7n $ersonal nee s in a co!$u"er %ro! a s"an ar i(e $ro uc"6 This3 in "urn3 a%%ec"s "ren s "ha" are s$eci%ic "o "he la$"o$ !ar9e"6 The la$"o$ !ar9e" is 8ro7in8 a" a %as"er ra"e "han es9"o$ co!$u"ers6 This "ren is +ein8 ri'en +* 8lo+al in"e8ra"ion an a 'ances in co!!unica"ion "echnolo8*6 Cus"o!ers are li'in8 !ore !o+ile3 co!!unica"i'e li'es3 an "heir co!$u"ers !us" ha'e si!ilar charac"eris"ics "ha" !a9e such ac"i'i"* no" onl* $ossi+le3 +u" also e%%icien" an eas*6 :hen i" co!es s$eci%icall* "o "he $ro uc"3 cus"o!ers are e!an in8 increase $or"a+ili"* an ura+ili"* %ro! la$"o$ co!$u"ers6 #ri'en +* "his ne7 !o+ile li%es"*le3 cus"o!ers 7an" a $ro uc" "ha" 7ill +e eas* "o !o'e an i%%icul" "o har! or a!a8e6 This !a* inclu e !a9in8 i" s!aller3 li8h"er3 an $erha$s s"ur ier "han $re'ious !o els6 In a i"ion "o e!an in8 !ore %ro! "he $h*sical %ea"ures o% la$"o$ co!$u"ers3 cus"o!ers nee 8rea"er $er%or!ance ca$a+ili"ies6 Consu!ers nee "heir co!$u"ers "o o$era"e a" hi8her s$ee s3 7or9 7i"h !ore !e!or*3 an "o +e easier "o na'i8a"e "han e'er +e%ore6 Co!$u"er users e$en !ore an !ore on "heir la$"o$s "o or8ani(e "heir li'es an "o hol 'i"al in%or!a"ion3 an as a resul" co!$anies !us" 7or9 "o $ro'i e "he! 7i"h "he +es" "echnolo8* a'aila+le6

Competitor
#ellDs na!e rin8s %ro! "he es9"o$ "o "he a"a cen"er6 The 7orl Ds VK su$$lier o% PCs <+ehin V5 HP an China-+ase V1 Leno'o=3 "he co!$an* $ro'i es a +roa ran8e o% "echnolo8* $ro uc"s %or "he consu!er3 e uca"ion3 en"er$rise3 an 8o'ern!en" sec"ors6 In a i"ion "o i"s line o% es9"o$ an no"e+oo9 PCs3 #ell o%%ers ne"7or9 ser'ers3 a"a s"ora8e s*s"e!s3 $rin"ers3 E"herne" s7i"ches3 an $eri$herals3 such as is$la*s an $ro&ec"ors6 I" also !ar9e"s "hir -$ar"* so%"7are an

P!(e No );

Computer App%ic!tions to Business#II

har 7are6 The co!$an*Ds ser'ices uni" $ro'i es asse" reco'er*3 %inancin83 in%ras"ruc"ure consul"in83 su$$or"3 s*s"e!s in"e8ra"ion3 an "rainin83 as 7ell as hos"e IT ser'ices6 #ell 8enera"es !ore "han hal% o% i"s re'enue ou"si e o% "he US6

Online tec*nical services an# tec*nical support

#ell co!$anies $ro'i e online ser'ices an "echnical su$$or" is 'er* +roa 3 users ans7er Bues"ions3 "he escala"ion on :in o7s3 so%"7are u$8ra es in%or!e 3 an so on6 A 7i e ran8e o% ser'ices no" onl* "o increase "he in"rinsic 'alue o% "heir $ro uc"s3 can also +e user sa"is%ac"ion3 an enhance "he co!$e"i"i'eness o% our $ro uc"s6

S(OT Analysis
Strengt*s:
So!e o% #ellIs in"ernal s"ren8"hs "ha" con"ri+u"e "o "heir success are "he a+ili"* "o ac" Buic9l*3 cus"o!i(e3 sell irec"3 an inno'a"e6 #ell has +eco!e "he !as"er o% cus"o!i(a"ion in "he "echnolo8* in us"r*6 The* are a+le "o 8i'e all "he $o7er "o "he consu!er3 in re8ar s "o +uil in8 a PC3 "he* are essen"iall* a !anu%ac"urer %or "he consu!er an 7ill +uil an* PC in "he con%i8ura"ion "ha" is reBues"e 6 Alon8 7i"h cus"o!i(a"ion3 irec"l* sellin8 "o "he consu!er is a lar8e as$ec" o% #ellIs s"ren8"h in "he co!$u"er in us"r*6 This irec" sellin8 has also assis"e in #ell 8ro7in8 "o +e a !a!!o"h %orce in "he in us"r* "hrou8h "heir lo7 cos" lea ershi$6 Ano"her s"ren8"h "ha" has hel$e #ell 8ro7 "o a lar8e co!$an* is "heir a+ili"* "o ac" Buic9l* in a ra$i l* chan8in8 in us"r*6 #ell is a+le "o i!$le!en" "he la"es" "echnolo8* in"o "heir $ro uc" ue "o "he s"ron8 rela"ionshi$s i" has 7i"h i"s su$$liers6 Las"l*3 #ell has in"ernal s"ren8"h "hrou8h "heir a+ili"* "o inno'a"e6 Recen"l*3 #ell has in"ro uce ne7 $ro uc" lines such as $rin"ers3 ca!eras3 P#AIs an !ore6 This inno'a"ion is 7ha" hel$s #ell 8ain a lar8e $or"ion o% "he !ar9e" share6

(ea$nesses:

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Computer App%ic!tions to Business#II

E'en "hou8h #ell oes ha'e s"ren8"hs "ha" ha'e +rou8h" "he! u$ %ro! "he +o7els o% "he "echnolo8* in us"r*3 "he* are s"ill $rone "o 7ea9nesses an %aul"s &us" as "he o"her %ir!s in "he in us"r* are6 One 7ea9ness is "ha" #ell has no $ro$rie"ar* "echnolo8*3 7hich !eans "ha" #ell is +asicall* &us" li9e all "he o"her co!$u"er +uil in8 %ir!s in "he in us"r*6 #ell is no" crea"in8 so!e"hin8 +ase on "echnolo8* "ha" is e>clusi'el* "heirs3 +u" on "echnolo8* "ha" all "he o"her %ir!s in "he in us"r* ha'e as 7ell6 This is a 7ea9ness +ecause i" coul allo7 o"her %ir!s "o co!e in"o "heir "erri"or* o% lo7-cos" lea er an si!$l* !i!ic "heir o$era"ions6 Ano"her 7ea9ness "ha" is i en"i%ie in #ellIs o$era"ions is "heir hi8h e$en enc* on co!$onen" su$$liers6 This is seen as a 7ea9ness +ecause i% "he su$$lier oes no" !ee" e>$ec"a"ions "hen "he o$era"ions o% a %ir! 7ill su%%er6 Al"hou8h "his is one as$ec" o% 7h* #ell has +eco!e a lo7 cos" lea er3 i" is no" necessaril* a 8oo as$ec" +ecause "he su$$lier can al7a*s %le> so!e $o7er +* ne8o"ia"in8 hi8her $rices or hol in8 shi$!en"s6

Opportunities:
One 'er* $ros$erous o$$or"uni"* "ha" #ell has is "he e>$an e !ar9e"s o% Euro$e3 China3 an In ia6 Because o% "he lar8e a!oun" o% "echnolo8* "ha" is concen"ra"e in "hese !ar9e"s3 #ell coul use i" "o 8ain !ore !ar9e" share o'er i"s co!$e"i"ors6 Al"hou8h "hese !ar9e"s ha'e alrea * +een $ene"ra"e 3 #ell coul s"ill %lourish 7i"h i"s lo7-cos" lea ershi$6 Ano"her o$$or"uni"* %or #ell Co!$u"er Cor$ora"ion 7oul +e 8ro7"h in "he +usiness3 e uca"ion3 an 8o'ern!en" !ar9e"s6 These !ar9e"s are 8ro7in8 a" an e>$onen"ial ra"e an #ell has +een a+le "o clai! so!e o% "his !ar9e" share6 For e>a!$le3 Cali%ornia S"a"e Uni'ersi"* San Marcos e>clusi'el* $urchases co!$u"ers on an e uca"ional con"rac" "ha" "he Cali%ornia S"a"e Uni'ersi"* S*s"e! has 7i"h #ell Co!$u"ers6 This con"rac" allo7s CSUSM "o $urchase on a iscoun"e +asis3 7hich !a* see! as i% i" is "a9in8 $ro%i"s a7a* %ro! #ell3 an !a*+e so3 +u" #ell is also 8ainin8 "hrou8h in- irec" a 'er"isin86 Thousan s o% s"u en"s a""en Cal S"a"e Uni'ersi"ies an !an* o"hers 7or9 a" "he!6 The e>$osure "ha" #ell is 8e""in8 "hrou8h "hese con"rac"s is $heno!enal an is onl* ai in8 in "heir 8ro7"h6

T*reats:

P!(e No )9

Computer App%ic!tions to Business#II

One !a&or "hrea" "ha" #ell has in "heir e>"ernal en'iron!en" is co!$e"i"ion6 The "hrea" o% en"r* in"o "he lo7-cos" lea in8 se8!en" o% "he in us"r* is 'er* hi8h6 :hen loo9in8 a" "he +asics o% 7ha" #ell is oin8 7i"h "heir o$era"ions3 i" is no" so!e"hin8 "ha" canno" +e !i!ic9e 3 herein la*s "he "hrea"6 Because i" is a +asic s"ra"e8* "ha" !an* can co$*3 "he "hrea" "ha" ano"her co!$an* 7ill o so!e"hin8 si!ilar is hi8h3 es$eciall* a%"er "he success "ha" #ell has ha 6 Ano"her "hrea" "ha" #ell %aces is o'erall ins"a+ili"* in %orei8n !ar9e"s6 Because #ell is +e8innin8 "o $ene"ra"e "he %orei8n !ar9e"s an "hose !ar9e"s are +eco!in8 a lar8e source o% 8ro7"h3 "he ac"i'i"ies in "hose %orei8n coun"ries can $resen" $ro+le!s %or #ell6 For e>a!$le3 currenc* ins"a+ili"* as 7ell as $oli"ical ins"a+ili"* in %orei8n coun"ries coul resul" in ne8a"i'e earnin8s %or a 8i'en $erio 3 or e'en 7orse3 i" coul %orce #ell ou" o% "ha" !ar9e"6 Las"l*3 a "hrea" in "he ho!e e>"ernal en'iron!en" o% #ell is "he U6S6 ;o'ern!en"3 7hich coul $ose "ari%%s on i!$or"s as 7ell as e>$or"s6 This coul ri'e u$ "he cos" o% i!$or"in8 ra7 !a"erials an also e>$or"in8 "he %inal $ro uc" "o i"s %orei8n !ar9e"s6

P!(e No 95

Computer App%ic!tions to Business#II

Conclusion
#ell has 8ro7n ra$i l* "o +eco!e one o% "he "o$ "hree 'en ors in "he PC in us"r*3 an has seen an e>"ra or inar* increase in share $rice an !ar9e" 'alua"ion6 :hile !an* o"her PC co!$anies ha'e +een una+le "o han le "he e!an s o% "i!e-+ase co!$e"i"ion3 #ell has con"inue "o "hri'e in such an en'iron!en"6 The 9e* "o #ellIs success has +een i"s irec" sales an +uil -"o-or er +usiness !o el6 This !o el is si!$le in conce$" +u" hi8hl* co!$le> in i"s e>ecu"ion3 es$eciall* un er con i"ions o% ra$i 8ro7"h an chan8e6 #ell has con"inuall* ren"e an e>"en e i"s +usiness !o el 7hile s"ri9in8 a +alance +e"7een con"rol an e i+ili"*6 #ellIs use o% IT $la*s a 'i"al role in "he i!$le!en"a"ion o% i"s +usiness !o el6 The co!$an* has use IT "o coor ina"e i"s +uil -"o-or er $rocesses %ro! or er "a9in8 "hrou8h $rocure!en"3 lo8is"ics3 $ro uc"ion3 ser'ice3 an su$$or"6 #oin8 so has ena+le i" "o re uce in'en"or*3 s$ee u$ lo8is"ics an $ro uc" c*cles3 un ers"an user !ar9e"s3 an o%%er a i"ional ser'ices "o cus"o!ers6 I" also has use IT "o achie'e 'ir"ual in"e8ra"ion 7i"h su$$liers an s"ra"e8ic $ar"ners +* real-"i!e in%or!a"ion sharin86 The co!$an* has e>"en e i"s reach "o !illions o% $o"en"ial cus"o!ers a" lo7 !ar8inal cos" "hrou8h i"s use o% "he In"erne"6 The resen"!en"s an e>"ensions ha'e +een !a e $ossi+le +* "he e'elo$!en" o% a no'el IT s"ruc"ure "ha" is e>$an a+le3 an s"ill a eBua"el* in"e8ra"e "o su$$or" 9e* cor$ora"e %unc"ions6 #ecisions a+ou" IT a" #ell are su+&ec" "o "he e!an s o% "he lar8er +usiness s"ra"e8*6 IT is a 9e* ele!en" o% !an* +usiness s"ra"e8ies3 %ro! usin8 "he In"erne" as a !ar9e"in8 channel "o 8i'in8 su$$liers a irec" lin9 "o #ellIs in%or!a"ion s*s"e!s "o +ein8 a !o el %or o"her en"er$rises "o %ollo76 In %ac"3 #ellIs use o% i"s o7n PC-+ase "echnolo8* "o run !uch o% i"s o7n +usiness is a 'alua+le !ar9e"in8 "ool "o sho7 cus"o!ers "he ca$a+ili"ies o% i"s $ro uc" line6 I" is 'er* i%%icul" "o se$ara"e "he i!$ac"s o% in'es"!en"s in IT %ro! o"her %ac"ors such as chan8es in +usiness $rocesses3 e%%ec"i'e use o% hu!an resources3 an 8eneral acce$"ance o% "he irec" !o el +* users6 S"ill3 a close e>a!ina"ion o% #ellIs o$era"ions !a9es i" clear "ha" IT is %un a!en"al "o "he %unc"ionin8 o% "he irec" !o el3 an "ha" IT has +een a 9e* ele!en" in "he con"inue e>"ension o% "ha" !o el6

P!(e No 91

Computer App%ic!tions to Business#II

P!(e No 9)